No, I wasn't saying that all utility functions are unbounded. I was making two points in that paragraph:
1) An AI that values something infinitely will not have anything remotely like human values, since human beings do not value anything infinitely. And if you describe this AI's values with a utility function, it would either be an unbounded function, or a bounded function that behaves in a similar way by approaching a limit (if it didn't behave similarly it would not treat anything as having infinite value.)
2) If you program an AI with an explicit utility function, in practice it will not have human values, because human beings are not made with an explicit utility function, just as if you program an AI with a GLUT, in practice it will not engage in anything like human conversation.
It's true that humans do not have utility functions, but I think it still can make sense to try to fit a utility function to a human that approximates what they want as well as possible, since non-VNM preferences aren't really coherent. It's a good point that it is pretty worrying that the best VNM approximation to human preferences might not fit them all that closely though.
a bounded function that behaves in a similar way by approaching a limit (if it didn't behave similarly it would not treat anything as having infinite value.)
Not sure what you mean by this. Bounded utility functions do not treat anything as having infinite value.
Edge.org has recently been discussing "the myth of AI". Unfortunately, although Superintelligence is cited in the opening, most of the participants don't seem to have looked into Bostrom's arguments. (Luke has written a brief response to some of the misunderstandings Pinker and others exhibit.) The most interesting comment is Stuart Russell's, at the very bottom:
I'd quibble with a point or two, but this strikes me as an extraordinarily good introduction to the issue. I hope it gets reposted somewhere it can stand on its own.
Russell has previously written on this topic in Artificial Intelligence: A Modern Approach and the essays "The long-term future of AI," "Transcending complacency on superintelligent machines," and "An AI researcher enjoys watching his own execution." He's also been interviewed by GiveWell.